Chapter 1

Adver tising as
a process
 What is advertising?
Three criteria must be met for a


communication to classified as
advertising:
•
• The communication must be paid for
• The communication must be delivered
through mass media
• The communication must be attempting
to persuade

Ch 1: The process 2
 Distinctions Within
advertising?
• Advertisements
– Specific messages designed to persuade an
audience
• Advertising Campaign
– An integrated series of ads and promotions
that communicate a central theme or idea
• Integrated Brand Promotion (IBP)
– Coordinating promotional tools to build and
maintain brand awareness, identity, and
preference
–
Ch 1: The process 3
Is
Is this
this political
political
message
message an an
advertisement
advertisement or or
aa public
public service
service
announcement?
announcement?
 Advertising as a
Communications Process
• Production: The advertiser and social context
determine ad content.
•
• Accommodation and negotiation: The ways in
which consumers interpret ads.
•
• Reception: The context of ad reception and
the audience’s understanding of an ad result
in a meaningful interpretation of the ad.
 Ch 1: The process 5
 Audiences for Advertising

• Household Consumers
• Business Organizations
• The Trade Channel
• Professionals
• Government

Ch 1: The process 6
Audience Geography
 Global
 International

 National


Regional


Local

Ch 1: The process 7
This
This ad
ad ran
ran in
in Italy.
Italy. Do
Do you
you think
think this
this was
was aa
“global”
“global” ad
ad or
or and
and “international”
“international” ad?
ad?
What’s
What’s the
the difference?
difference?
 Advertising as a Business
Process: Role of Advertising in
Marketing and Brand Promotion
1. Advertising and the marketing mix
2. Advertising in brand development and
management:
3. Advertising in market segmentation, differentiation,
and positioning
4. Advertising in revenue and profit generation:

Ch 1: The process 9
 The Marketing Mix
Product Distribution

Perceived
Value
Promotion Price

Ch 1: The process 10
 Advertising in Brand
Development and Management
1.The Brand
2.
3.Brand Extension
4.
5.Brand Loyalty
6.
7.Brand Equity


Ch 1: The process 11
 Advertising’s role in SDP
marketing

Segmentation •Distinct from

(heterogeneous > homogeneous) other brands
•
•Occupies a
“value” level
•
•External
Differentiation niche vs.
(perceived as different or unique) internal
i soP

Ch 1: The process 12
 Revenue and Profit
Generation

1.Economies of scale
2.
3.Inelasticity of demand

Ch 1: The process 13
Types of Advertising
1.Primary demand stimulation
2.Selective demand stimulation
3.Direct response advertising
4.Delayed response advertising
5.Corporate advertising
6.

Ch 1: The process 14
Is this ad an example of primary
or selective demand stimulation?
What’s the difference?

Ch 1: The process 15
The Economic Effects of
Advertising
 Gross Domestic Product
 Business Cycles
 Competition
 Prices
 Value
1.

Ch 1: The process 16
Integrated Brand Promotion
(IBP)
Coordinated promotional events reinforc
Sp n g
Ev ec i o
en ial v istisin
ts e le er
T dv
A

C
o
u
p
o
n
s
Ch 1: The process 17